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Compute deposit and money multiplier and give details.

Use the provided information to answer the problems below:

Required Reserve Ratio: rr= 0.2

Currency Deposit Ratio: c= 0.5

Excess Reserve Ratio: e=0.15

1- Illustrate what is the simple deposit multiplier?

2-Illustrate what is the money multiplier?

3- describe why the money multiplier differs from the simple deposit multiplier.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917049

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